Archrock Q2 results miss estimates on cost pressures

Archrock

04/08/2026 21:50

Overview
U.S. natural gas compression firm's Q2 revenue fell yr/yr, missing analyst expectations
Q2 adjusted EBITDA declined and missed analyst expectations
Company raised quarterly dividend by 10% from prior year

Outlook
Archrock tightens 2026 adjusted EBITDA guidance to $865 mln-$885 mln from $865 mln-$915 mln
Company reaffirms 2026 growth capital expenditures of $250 mln-$275 mln
Archrock sees cumulative growth capital expenditures of $1.4 bln-$1.6 bln from 2027-2030

Result Drivers
CONTRACT OPERATIONS - Segment revenue and adjusted gross margin rose, driven by strong utilization and profitability
AFTERMARKET SERVICES - Revenue declined due to absence of non-recurring engine sales and reduced customer demand for major maintenance
COST PRESSURES - Higher lube oil costs and increased make-ready expenses impacted near-term results and led to tighter full-year guidance

Company press release: ID:nGNX4q0lGf

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$371.23 mln
$391.62 mln (5 Analysts)
Q2 Net Income
 
$66.70 mln
 
Q2 Adjusted EBITDA
Miss
$212.62 mln
$221.86 mln (8 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil related services and equipment peer group is "buy"
Wall Street's median 12-month price target for Archrock Inc is $42.00, about 19.6% above its August 3 closing price of $35.12
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
Aug 4 - USA Compression Q2 revenue beats on fleet expansion, higher pricing
Aug 3 - Hess Midstream's Q2 adjusted EBITDA beats on lower operating costs
Aug 3 - Williams to buy Momentum for $5.5 billion, misses quarterly estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)